Choppies EnterprisesJSE:CHP 41 Pretax Margin % is 1.94% as of Dec. 2025, which is 6% below its 10-year median of 2.06. GuruFocus rates JSE:CHP with a GF Score™ of 41/100 and a GF Value™ of R0.83 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 310 Retail - Defensive companies, Choppies Enterprises ranks worse than 63.23% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Choppies Enterprises Pretax Margin % Related Terms
Choppies Enterprises Pretax Margin % Historical Data
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The historical data trend for Choppies Enterprises's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Grocery Stores subindustry, Choppies Enterprises's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Choppies Enterprises Pretax Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Choppies Enterprises's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Choppies Enterprises's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Choppies Enterprises (JSE:CHP) has a Pretax Margin % of 1.94% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Choppies Enterprises and its competitors. This is near median its historical median of 2.06. According to the industry distribution chart, Choppies Enterprises ranks #196 out of 310 companies in the Retail - Defensive industry, placing it in the top 63.2%.
Is Choppies Enterprises' Pretax Margin % too high?
Choppies Enterprises' current Pretax Margin % of 1.94% is near median its 10-year median of 2.06. The Retail - Defensive industry median Pretax Margin % is 3.02. Choppies Enterprises' value of 1.94% is 35.7% below this industry median. Based on the distribution chart, Choppies Enterprises ranks #196 out of 310 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Choppies Enterprises has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Choppies Enterprises' Pretax Margin % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Choppies Enterprises ranks #196 out of 310 companies for Pretax Margin %. This places Choppies Enterprises in the lower half of its industry. The industry median Pretax Margin % is 3.02. Choppies Enterprises' value of 1.94% is 35.7% below this benchmark. While the company's 10-year median is 2.06 vs. the industry median of 3.02, Choppies Enterprises has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Retail - Defensive company?
The median Pretax Margin % among Retail - Defensive companies is 3.02, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Choppies Enterprises's current Pretax Margin % of 1.94% is 35.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Choppies Enterprises and its competitors. For the Retail - Defensive industry, the median Pretax Margin % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choppies Enterprises's current Pretax Margin % is 1.94%, which is near median its own 10-year median of 2.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Choppies Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Choppies Enterprises (JSE:CHP) is currently considered Significantly Overvalued. The stock's GF Value™ is R0.83, compared to a current price of R1.40 — trading 68.7% above its estimated fair value. The current Pretax Margin % is 1.94%, which is near median its 10-year median of 2.06 and 35.7% below the Retail - Defensive industry median of 3.02. Choppies Enterprises' overall GF Score™ is 41/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Choppies Enterprises (JSE:CHP), the current Pretax Margin % is 1.94% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Choppies Enterprises (JSE:CHP) Overvalued in 2026?
Based on GuruFocus' analysis, Choppies Enterprises stock appears to be overvalued.
The current stock price of R1.40 is trading 68.7% above its estimated GF Value™ of R0.83.
GuruFocus considers Choppies Enterprises to be Significantly Overvalued.
Key valuation signals for JSE:CHP:
Pretax Margin %: 1.94% (near median its 10-year median of 2.06)
GF Value™: R0.83 vs. price of R1.40 (68.7% above fair value)
Industry Position: 35.7% below the Retail - Defensive median (#196 of 310)
No single metric tells the full story. See the JSE:CHP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Choppies Enterprises Ltd operates a supermarket chain in Botswana. The company's supermarkets offer international food brands, fast-moving consumer goods products, and Choppies private label products. Its product offerings include groceries, fresh fruit and vegetables, bakery goods, butchery items, takeaways, and value-added financial services. The company's segments include Botswana, Zambia, Zimbabwe, Kamoso Liquor, Rest of Kamoso, and Namibia, with the majority of its revenue derived from Botswana.
41GF Score
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